Saturday, February 9, 2019

Real Reform Matters

The CEA estimated that five million Americans will choose an AHP or a short-term plan as the result of the Trump administration’s health care executive orders. The study also suggested that another five million will benefit as the result of the repeal of Obamacare’s individual mandate.

Many Americans have contended that because 80 percent of those who paid the Obamacare mandate made less than $50,000 a year, the individual mandate repeal serves as a significant middle-class tax break.

The CEA said about 87 percent of Obamacare exchange enrollees receive ACA subsidies and “only pay a fraction of their health insurance costs.”

Many Obamacare proponents suggested that the repeal of the individual mandate, as well as the expansion of short-term plans and AHPs, would lead to higher premiums on the Obamacare exchanges.

In contrast, the CEA contended that because more people will use AHPs and short-term plans and fewer people will use the ACA exchanges, the government will save $185 billion over the next ten years.